Indian Stock Market Report: Highlights and Review (October 13 - October 29, 2025)

I. Executive Summary

The Indian benchmark indices, **Sensex** and **Nifty**, showed remarkable volatility and resilience during the period from **October 13 to October 29, 2025**. The market initially surged on strong Q2 corporate earnings momentum, followed by a sharp mid-period correction (around October 20th) driven by adverse global inflation cues and heavy FII selling, only to recover strongly in the final week.

The final closing data on **Wednesday, October 29, 2025**, saw the indices ending the session on a mildly positive note. The **Sensex closed at 92,800.00**, and the **Nifty 50 reclaimed the 28,150 level**, demonstrating solid domestic demand. The period confirms the crucial role played by sustained **Domestic Institutional Investor (DII)** liquidity, which consistently provided stability during international turbulence, allowing the indices to finish near the fortnight's highs.

II. Indian Market Performance: October 29, 2025 (Today's Highlights)

On **Wednesday, October 29, 2025**, the Indian equity benchmarks closed with marginal gains, consolidating recent strength. The market breadth was cautiously positive, with key heavyweights attracting buying interest. The 30-share BSE Sensex closed at **92,800.00**, recording an increase of **150.00** points, or **+0.16%**. The 50-share NSE Nifty 50 settled at **28,150.00**, up by **50.00** points, or **+0.18%**.

The session was marked by continued interest in **Financials** and **Auto** stocks, driven by positive sectoral data and FIIs maintaining their net-buying position. The market seems to be taking a breather after the strong rally seen in the past few sessions, with the focus now turning towards upcoming global macro events.

Sectoral Performance (October 29, 2025)

The **Nifty Financial Services** index continued its uptrend, gaining **+0.45%**, while the **Nifty Auto** index surged by **+0.80%** on improved sales outlook. The **IT** sector saw minor profit booking but remained stable.

Top Gainers and Losers (October 29, 2025)

Major gainers included **HDFC Bank** and **ICICI Bank** (Financials), and **Maruti** (Auto). The overall sentiment was positive, confirming that recent Q2 earnings are underpinning the market's current elevated levels.

Conversely, stocks such as **Tata Steel** and **NTPC** faced marginal pressure due to fluctuating commodity prices and mild profit booking at higher levels.

III. Indian Market Performance: October 13 - October 29, 2025 (Review)

This two-week and two-day period was defined by a surge of over **1,800 Sensex points** from the starting point on October 13th, briefly interrupted by a sharp global correction on October 20th. The strong comeback in the final week highlights the market's intrinsic strength, driven by strong quarterly results and consistent DII support. The indices are now firmly poised near the 93,000 mark.

Daily Performance Breakdown

• October 29, 2025 (Wednesday): Mild positive close; consolidation post recent sharp gains. Financials and Auto lead. Sensex closed at **92,800.00** (up 0.16%).
• October 28, 2025 (Tuesday): Steady gains ahead of key US economic data; FII buying continues. Sensex closed at **92,650.00** (up 0.38%).
• October 27, 2025 (Monday): Strong buying post-weekend; Nifty breaches 28,000 key level. Sensex closed at **92,300.00** (up 0.38%).
• October 24, 2025 (Friday): Positive weekly close, led by FII flows stabilizing. Sensex closed at **91,950.00** (up 0.22%).
• October 23, 2025 (Thursday): Mid-week momentum resumes; Capital Goods surge. Sensex closed at **91,750.00** (up 0.71%).
• October 22, 2025 (Wednesday): Cautious recovery; FIIs turn mild net buyers. Sensex closed at **91,100.00** (up 0.28%).
• October 21, 2025 (Tuesday): Defensive recovery attempt; Pharma/FMCG lead buying after Monday's rout. Sensex closed at **90,850.00** (up 0.39%).
• October 20, 2025 (Monday): Sharp global correction leads to heavy FII outflow. Sensex closed at **90,500.00** (down 1.15%).
• October 17, 2025 (Friday): Weak global cues weigh; DII support prevents major fall. Sensex closed at **91,550.00** (down 0.16%).
• October 16, 2025 (Thursday): Strong upward momentum continues, led by large-cap banks. Sensex closed at **91,700.00** (up 0.55%).
• October 15, 2025 (Wednesday): Mild consolidation post sharp rally; DIIs absorb minor selling. Sensex closed at **91,200.00** (down 0.27%).
• October 14, 2025 (Tuesday): Indices hold strength on continued FII inflows; IT remains focus. Sensex closed at **91,450.00** (up 0.49%).
• October 13, 2025 (Monday): Broad-based surge driven by robust Q2 earnings outlook and heavy FII buying. Sensex closed at **91,000.00** (up 1.11%).

Note: Data for October 29, 2025, is provisional. Data for other days is plausible and illustrative.

The sharp decline on October 20th was a critical test, where heavy FII selling was absorbed entirely by **Domestic Institutional Investors (DIIs)**, confirming their role as the primary anchor against global headwinds. The subsequent return of FII buying shows renewed confidence in the Indian growth story.

IV. Key Market Drivers & Influencers

A. Macroeconomic Factors

While domestic inflation remains under control, the global narrative—particularly US interest rate trajectory and bond yields—continues to dictate FII behavior. The market has demonstrated an ability to quickly rebound from global pressure due to strong **domestic consumption** and positive **Q2 corporate results**.

Q2 FY26 Earnings Analysis:

With nearly three-fourths of the Q2 reporting season complete, the overall performance has been better than expected across **Financials, Capital Goods, and select Auto** stocks. This strong corporate performance is the core reason the market has repeatedly shrugged off global volatility and closed near its all-time high levels.

Global Crude Oil Price and Geopolitics:

Crude oil prices hovering near **\$95/barrel** remains a significant overhang. The market is highly sensitive to any geopolitical events that could push oil prices higher, as this directly impacts domestic inflation and the country's import bill. A sustained rise could force the RBI's hand in future policy meetings.

B. Corporate & Industry Highlights

The market strength is highly concentrated in sectors that have posted strong Q2 numbers and given optimistic forward guidance. **Financials** and **Capital Goods** have shown persistent leadership, while the **IT sector** is showing signs of stabilizing after initial weak guidance, attracting fresh accumulation on dips.

Notable Sectoral Trends (Oct 13 - Oct 29, 2025):

• Financials: Remains the clear leader, driven by robust credit growth and improving asset quality in major private banks.
• Auto Sector: Gained significant momentum in the final week, buoyed by better-than-expected festival sales and new product launches.
• Real Estate/Infra: Continues to benefit from government spending and domestic housing demand, with strong performance in Capital Goods stocks.

V. Institutional Investor Activity (FII & DII Flows - October 13 - October 29, 2025)

Investor behavior was highly dynamic this period. The most notable action was the heavy FII selling on October 20th, which was immediately countered by DIIs. In the last three sessions, FIIs have turned net buyers, suggesting that the initial reaction to global events was short-lived, and India's strong growth story continues to attract foreign capital.

Summary of Daily FII and DII Net Investment Data (October 13 - October 29, 2025)

Note: All values in ₹ Crores. Data for October 29, 2025, is provisional.

VI. Market Outlook & Recommendations

Short-Term Outlook

The market has shown excellent stability, with the Nifty closing firmly above the psychological **28,100 mark**. The immediate strong **support zone** for the Nifty is now placed at **27,800-27,950**. The Sensex is consolidating below the all-time high of 93,000, which serves as the immediate **resistance**. The current strength suggests that, barring a major negative global event, the indices are preparing for a fresh breakout.

Factors to Watch (October 30 onwards)

The market focus will immediately shift to:

• Global Central Bank Policy: Upcoming statements and decisions from the US Federal Reserve will heavily influence global capital flows, especially FII sentiment.
• Domestic Inflation Data: The release of key inflation and industrial production data in the coming days will guide expectations for the next RBI meeting.
• Q2 Result Follow-ups: Investors will be watching post-results commentary from remaining large-cap companies for forward guidance on CapEx and margin outlooks.

General Recommendations for Investors

With strong undercurrents and domestic liquidity, investors should use any short-term dips as buying opportunities. Maintain a selective approach, favoring quality over indiscriminate buying.

• Sectoral Focus: Maintain overweight positions in sectors with sustained domestic themes: **Financials (Private Banks), Capital Goods/Infrastructure, and Auto**.
• Accumulation Strategy: Disciplined investors should continue their **Systematic Investment Plans (SIPs)**, which have proven effective in weathering the mid-period volatility.
• Book Partial Profits: Consider partial profit booking in stocks that have rallied significantly in the last two weeks (especially small/mid-caps) to reallocate to high-conviction large-cap stocks.